### Required Information#### Problem 9-3A (Algo) Aging Accounts Receivable and Accounting for Bad Debts LO P2, P3_The following information applies to the questions displayed below._On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age.| Accounts Receivable | Age of Accounts Receivable | Expected Percent Uncollectible ||---------------------|------------------------------|--------------------------------|| $340,000 | Not yet due | 1.25% || 396,000 | 1 to 30 days past due | 2.00% || 67,200 | 31 to 60 days past due | 6.50% || 33,600 | 61 to 90 days past due | 32.75% || 13,440 | Over 90 days past due | 68.00% |### Problem 9-3A (Algo) Part 1#### Required:1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.| Accounts Receivable | x | Percent Uncollectible (#.##%) | = | Estimated Uncollectible ||---------------------|----|-------------------------------|----|-------------------------|| Not due: | | | | || 1 to 30: | | | | || 31 to 60: | | | | || 61 to 90: | | | | || Over 90: | | | | || Estimated balance of allowance for uncollectibles | | | | |The table above is used to compute the total estimated uncollectibles by multiplying the accounts receivable for each aging category by the respective expected percent uncollectible, and summing the results to determine the estimated balance of allowance for uncollectibles.

"Estimated uncollectible" refers to an accounting term that represents an anticipated portion of…

Required information Problem 9-3A (Algo) Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Problem 9-3A (Algo) Part 1 Not due: 1 to 30: Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible (#.##%) 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles = = = Expected Percent = Uncollectible 1.25% 2.00 6.50 32.75 68.00 Estimated Uncollectible

Required information Problem 9-3A (Algo) Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Problem 9-3A (Algo) Part 1 Not due: 1 to 30: Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible (#.##%) 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles = = = Expected Percent = Uncollectible 1.25% 2.00 6.50 32.75 68.00 Estimated Uncollectible

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dr. Cr. Accounts Receivable $ 165,800 Allowance for Doubtful Accounts $ 3,730 Sales Revenue (all on credit) 840,900 Sales Returns and Allowances 52,650 Prepare the journal entry to record bad debt expense assuming Novak Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $ 1,380 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) enter an account title ? ? Allowance for doubtful accounts ? ? (b) enter an account title ? ? enter an account title ? ?
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! Required information Problem 7-2A (Static) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 1,905,000 $ 5,682,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts Problem 7-2A (Static) Part 1 $ 1,270,100 debit $ 16,580 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 1.5% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31).